Stay Out of Credit Debt

Credit card debt is the easiest thing to get into trouble with. Its very easy to fall prey to this, because we know we have that card and we can get most anything we want. The main reason people get in trouble with credit card debt, is because they don’t understand the basic concept of the cards properly. You cannot treat them as free money. You must discipline yourself, especially if you have a high interest rate on that card. People go to the extent of overspending, and they keep spending until they reach that card limit, they then get into a situation where they are paying off interest and not the principle itself.

You can’t treat credit cards like a game where you can spend money on anything you want, you have to treat it as cash. If not you will find yourself in a situation, where you are paying off the interest on the cash money you spent. This will become a monthly expense and even wind up paying interest when you are not using the card. Then you go back and get another credit card and do the same thing all over again. This is how you get in credit card debt.

The best way to keep your head above water is to pay off what you owe until the interest is paid, then you can buy small not large, you will want to, keep that card payment as low as you can. The best way to stay out of credit card debt is create a budget, on how much you want to spend every month. If its a huge item put it on lay away, this will keep you within your means of spending. We all like to shop, we all see things we like and want to have, but if you spend more money than you take in every month, its very easy to turn yourself upside down. Meaning that your bills will exceed your income. Save your cards until you have an emergency where you have to use them. I used my business card for Conroe Roofing Company when we needed a roof repair then paid it off immediately. Treat those credit cards as money that you have , not money that you don’t have. Take all this into consideration, understand the concept of credit card debt, and you should be OK.

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